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remunaration of kmp

09 November 2017

as per sec 197 remunaration will not exceed 11% of its profit
than this 11% is sum of all whol tim director and manager
or 11%each???

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8 Replies

yogesh (ARTICLE ASSISTANT) (167 Points)
Replied 09 November 2017

all directors & manager taken together

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santosh todkar (paid assistence) (29 Points)
Replied 09 November 2017

Its overall remuneration of directors including MD/WTD/M.

Individually its 5% if there are only 1 MD or WTD or Manager otherwise if there are more than 2 the whole remuneration for managerial personal is 10℅

Its for whole including other directors 11% and not for each.

If we give 11% for each then the reserves of the comply will be nil and shareholders will not get any dividend..

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Appala Raju Seeram (26 Points)
Replied 09 November 2017

is sec 197 applicable to private limited company? can we not give more than 11% with shareholders approval?

yogesh (ARTICLE ASSISTANT) (167 Points)
Replied 09 November 2017

sec 197 not applicable to pvt co

yogesh (ARTICLE ASSISTANT) (167 Points)
Replied 09 November 2017

a public co can give remuneration to its managerial person exceeding 11% of net profit with the approval of C.G

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yogesh (ARTICLE ASSISTANT) (167 Points)
Replied 09 November 2017

C.G. approval + GM approval both are requiered

Appala Raju Seeram (26 Points)
Replied 09 November 2017

thanks

Deepak Jaiswal (Junior Technical Assistant Ministry Of Corporate Affairs (HQS)) (24 Points)
Replied 17 November 2017

11% limit is for sum of all the directors[executive and non-executive]
And by passing special resolution, company can pay more than 5% to individual executive director provided Remuneration shall not exceed 11% of the net profit u/s 198 of the CA, 2013